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SDMC hits out at govt for slashing share in revenue

South Delhi Municipal Corporation is up in arms against Delhi government for slashing approximately Rs 300 crore out of Rs 350 crore approved as ‘global share’ for the current financial year, on the pretext of interest and loan repayment. The global share is the corporation’s share in revenue  which is mandatory under the recommendations of State Finance Commission. The corporation has written to the Delhi government to provide details of its loans and other liabilities.

'It’s a well planned strategy of the Delhi government to keep us in the 'vicious cycle of debt'. The government gives us revenue share after deducting debt interests and liabilities. In fact, we get a small fraction of what is allocated to us and that too is delayed by months. Thus the money allocated to us looks like a big amount only on paper,' said Rajesh Gehlot, chairman of the standing committee of South DMC. Gehlot further alleged that the government is behaving like a cruel money lender.

'Delhi government gives us loan for development and civic services on very high interest rate of 10.5 per cent due to which almost all the money allocated for municipal corporations goes to pay the interest and loan amount,' added Gehlot.

Explaining, the 'debt web', he said that the government had allocated Rs 350 crore as global share for South DMC but has slashed around Rs 300 crore on the pretext of interest and outstanding loans. He further added that the corporation has written to the Delhi government to provide details of its loans and liabilities, but the reply is still awaited.

Commenting on the situation, chief accountant-cum-financial advisor (CA-cum-FA) of South DMC Rajesh Pathak said, 'The Delhi government had recently released approximately Rs 26 crore, instead of Rs 87.5 crore, as first installment of the global share, but that too did not reach us, as it was adjusted against dues for a parking project. In reality we have not received even a single rupee in our account as the first installment of the current financial year.’

He added that the money due in the rest of the three instalments would be approximately Rs 10 crore each or less, because the government will deduct more money as interests and principals of loans.

 'The government has also slashed its contribution in primary education from 70 per cent to 50 per cent which is 95 per cent in other states,' informed Gehlot. According to officers of the civic bodies, Delhi government is delaying the second and third installments of revenue shares, which was due to be received in June.
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